CREW: House Ethics Committee: Regarding Rep. Cunningham Ethics Violations: 7/15/2005 - Cunningham...

8/6/2019 CREW: House Ethics Committee: Regarding Rep. Cunningham Ethics Violations: 7/15/2005 - Cunningham Complai

1/59

EXHIBIT A


2/59

.: Print Version :. Page 1 of3Editions of the North County Times Serving San Diego and Riverside Counties Thursday, July 14,2005 Contact Us

News Search Web Search Classified Search Circulation Reader Services Traffic StocksHome NewsSubscribe

BusinessPrevious Issues

EntertainmentLetters Obituaries

Features Columnists CorPlace An Ad Send Feec

[ Print Page 1Thursday, July 14, 2005

Last modified Friday, June 17, 20059:21 PM PDT

Cunningham, defense contractor have more tiesBy: WILLIAM FINN BENNETT - Staff WriterThe web of connections between Rep. Randy "Duke" Cunningham and a defense contractorcontinued to grow Friday, as did questions about the relationship between the contractor andthe congressman.Newly discovered information Friday showed that a subcommittee on which the North CountyRepublican served last year authorized a $100,000 federal grant to a foundation controlled bythe contractor, a foundation for which Cunningham's wife and one of his daughters serve onan advisory council.The disclosures about the foundation's connection to Cunningham are the latest in a series of revelations aboutthe relationship between Cunningham and the contractor, whose company has received millions in defensecontracts. Cunningham serves on a House subcommittee that controls military expenditures.This week, Democrats and watchdog groups called for an investigation into whether the contractor, Mitchell J.Wade of the defense firm MZM lnc., overpaid Cunningham ---- possibly by as much as $700,000 ---- when hepurchased the congressman's Del Mar home.Critics have also called for an investigation into Cunningham's living arrangements on Wade's 42-foot yacht in aWashington Marina.Cunningham is a member of the House Appropriations Defense Subcommittee, which oversees militaryexpenditures and influences the awarding of defense contracts to firms such as MZM.Supporters of an investigation allege that the connections between Wade and Cunningham led to more supportfor contracts for Wade's company, which they say would be an ethical violation.In the 2004 fiscal year, MZM received more than $65 million in defense contracts, cracking the list of the top 100U.S. defense contractors nationwide.Cunningham has said in prepared statements this week that his relationship with Wade has been "above board"and appropriate. Cunningham has not returned repeated phone calls from the North County Times.The federal grant that came into question Friday involves a subcommittee on which Cunningham served and TheSure Foundation lnc., with which the Wade and Cunningham families are involved.Wade is the treasurer of the foundation. Wade's wife, Christine Wade, is president emeritus of the foundation.Cunningham's wife, Nancy Cunningham, and one of his daughters, April, sit on the advisory council for thefoundation, which raises money to help refugee children.

http://www.nctimes.comlarticles/2005/06/1S/news/top_stories/6170520083S.prt 7114/2005
http://www.nctimes.comlarticles/2005/06/1S/news/top_stories/6170520083S.prthttp://www.nctimes.comlarticles/2005/06/1S/news/top_stories/6170520083S.prthttp://www.nctimes.comlarticles/2005/06/1S/news/top_stories/6170520083S.prt


3/59

.: Print Version :. Page 2 of3

Congressional records show the House Appropriations Committee:'s District of Columbia subcommittee, on w~ichCunningham served as vice chairman last year, in October authorized a $100,000 grant to The Sure Foundation.Neither MZM officials nor Sure Foundation officials returned phone calls Friday for comment about the grant.Requests for an interview with Cunningham were denied Fri~ay. Howe~er, .inan e-r:nail"to the North County "Times Cunningham wrote: "I have no further comment on this speculative information, the statement read. Iam w~rking on a comprehensive statement that will address issues that have been raised recently."Connections keep comingControversy has swirled around Cunningham this week, with newspaper reports of other .connections be~eenWade and the eight-term congressman, including questions about whether Wade overpaid when purchasingCunningham's home.On Sunday, news surfaced that in late 2003, another company controlled by Wade purchased Cunningham's DelMar home for $1.68 million. Property sales records show that the average sales price for similar-size homes inthe same area between March and December of that year was more than $500,000 less than what Wade paidfor the home.Wade's company then resold the property in October 2004 for $975,000 ----- a $700,000 loss. The average salesprice for similar-size properties in that area between March and December 2004 ran $300,000 more than Wade'ssale price.On Tuesday, the North County Times learned of another tie between the men. While in Washington,Cunningham stays at least part of the time on a 42-foot yacht anchored at a Washington marina on the PotomacRiver. U.S. Coast Guard records show that the boat, called "Duke Stir," is owned by Wade.In response to North County Times inquiries on the boat and his living arrangements, Cunningham sent a three-sentence statement saying that he pays to stay on the boat and that he plans to produce records and documentsto prove that.In addition to the real estate deal and the boat and foundation connections, there are other monetaryconnections between Cunningham and the defense firm's president.Wade, his wife and a political action committee for MZM donated a combined $24,000 to Cunningham'scampaign fund from 2001 to 2003, Federal Election Commission documents show. Much of the money fromMZM's political action committee, a group designed to raise campaign funds, was donated by MZM employees.Washington reactsWashington politicians split along party lines when reacting to the news of Cunningham's connections to thecontractor. Democrats have called for an investigation, while Republicans have defended Cunningham.During a press briefing Tuesday, House Majority leader Tom Delay, R-Texas, himself under pressure onallegations of unethical conduct, defended the former Top Gun pilot as an "honorable man" when queried aboutCunningham's real estate deal.When asked about the transaction Thursday, House Minority leader Nancy Pelosi, D-San Francisco, toldreporters that the House Ethics Committee should "do its job."!he House Ethics Committee is not yet functioning this year as Democrats and Republicans bicker over staffingIssues.Asked Wednesday about Cunningham's woes, House Speaker Dennis Hastert, R-III., told reporters thatquestions over the real estate transaction amounted to one more reason why the Ethics Committee has to get upand running.In a .Frida~ article, the San Diego Union-Tribune reported that an unnamed source in the U.S. Department ofJustice said Thursday that the FBI had begun an inquiry into the horne sale.

http://www.nctimes.comJarticles/2005/06118/news/top _stories/61705200838.prt 7/1412005
http://www.nctimes.comjarticles/2005/06118/news/tophttp://www.nctimes.comjarticles/2005/06118/news/top


4/59


Asked by the North County Times to confirm a possible investigation Friday, Department of Justice Washingtonspokesman Bryan Sierra said: "The department has no comment on that particular report."A TV news station, KGTV, reported Friday that the u.S. Attorney's Office has launched an investigation into theconnections between Cunningham and the contractor.The U.S. Attorney's Office would not confirm or deny the existence of that investigation.On Friday, Washington-based Citizens for Responsibility and Ethics in Washington ---- which calls itself "anonprofit progressive, legal watchdog group" ---- called on the House Ethics Committee to launch its owninvestigation into the real estate transaction."The fact that it was sold at such a price to someone with business before Cunningham's committee makes thedeal all the more suspicious," Melanie Sloan, the organization's executive director, wrote in a Friday newsrelease.In a Friday press teleconference in San Diego, the national group Campaign for a Cleaner Congress called onCunningham to return the $700,000 that MZM lost when it sold Cunningham's Del Mar home "to avoid anyappearance that they intended to bribe you for your support in winning their government contracts."The group also asked Cunningham to resign from the House Defense Appropriations Subcommittee and torelease all correspondence between the congressman and Wade and his companies.And the group called on Cunningham to come forward with an explanation of the facts, saying the congressmanshould "step up to the plate and come forward with the truth.""Let's give him a chance," said Stanley Zubel, an attorney and a member of a newly formed state offshoot ofCampaign for a Cleaner Congress.Zubel added that the more questions that surface about Cunningham and MZM, the more "the burden shifts tothe congressman to say no, no ... it didn't go down that way. Here's what really happened."Contact staff writer William Finn Bennett at (760) 740-5426 or Staff writer Erin Schultzcontributed to this report.

http://www.nctimes.com!articles/2005/06118/news/top_stories/61705200838.prt 7/14/2005
http://www.nctimes.com%21articles/2005/06118/news/top_stories/61705200838.prthttp://www.nctimes.com%21articles/2005/06118/news/top_stories/61705200838.prthttp://www.nctimes.com%21articles/2005/06118/news/top_stories/61705200838.prt


5/59

EXHIBIT B


6/59

FBI looking at sale of Cunningham home I The San Diego Union-Tribune Page 1 of3

(!~PRINTTH

FBI looking at sale of Cunningham homeTies between contractor, congressman questionedBy Marcus Sternand Joe CantlupeCOPLEY NEWS SERVICEJune 17, 2005WASHINGTON - The FBI has opened an inquiry into Rep. Randy"Duke" Cunningham's 2003 sale of his Del Mar house to a defensecontractor, who later sold it at a $700,000 loss, a JusticeDepartment official said yesterday.The action comes amid fresh signs of unusual personal tiesbetween Cunningham and the defense contractor, who named a 42-foot yacht after the Rancho Santa Fe Republican and turned it overto him to use while in Washington.The Justice Department official, who spoke on the condition thathe not be identified because of the inquiry's preliminary nature,would not comment about its scope. However, the head of the FBI office in San Diego had reflected theagency's curiosity a day earlier.

The D(JkcStir, docked along ti le banks ofthe Potomac River.

"We are very interested in what has been reported to date, and we welcome more information," DanDzwilewski, special agent in charge of the FBI's San Diego office, said Wednesday. "Public corruptionmatters represent one of the highest priorities of the FBI."Cunningham's office said yesterday it didn't know of any probe."We are not aware of any inquiries at this point," said Mark Olson, Cunningham's spokesman.Cunningham, a member of the House defense appropriations subcommittee and the Permanent SelectCommittee on Intelligence, has acknowledged that he has supported the Washington-based defensecontractor, MZM Inc., in its efforts to win tens of millions of dollars in federal contracts from theDefense Department. Much of the work has been in the intelligence arena.Cunningham has portrayed the house deal as "aboveboard," although ethics experts and real estateprofessionals have said the procedures used in the transaction and its result - an apparent $700,000windfall to Cunningham - raise serious questions.Cunningham denied that he is a particularly good friend ofMZM owner Mitchell Wade, saying lastweek, "No more than I am with (Qualcomm founder) Irwin Jacobs or (Titan Corp. founder) Gene Ray or

http://signonsandiego.printthis.cIickability .com/pt/ cpt?action=cpt&title=FBI +looking+at+s.; 7114/2005
http://signonsandiego.printthis.ciickability/http://signonsandiego.printthis.ciickability/


7/59

FBI looking at sale of Cunningham home I The San Diego Union-Tribune Page 2 of3

any of the other CEOs."However, Cunningham has been living aboard a 42-foot yacht at the Capital Yacht Club along the banksof the Potomac River. Wade owns the yacht, named the Duke-Stir, according to U.S. Coast Guardrecords. The name appears to be a play on Cunningham's nickname.Following a news report, Cunningham's office released a one-paragraph statement under his nameyesterday, saying, "I am putting information and records together so that you will know how much I payto stay there, and you will see that everything we've done is appropriate."Cunningham previously lived in the same slip aboard a 65-foot yacht called the Kelly C. Coast Guardrecords list Cunningham as the owner of the Kelly C.In 1998, when Cunningham was living aboard the Kelly C, he used his position on the defenseappropriations subcommittee, which oversees the District of Columbia's budget, to earmark $3 millionto refurbish the waterfront where the yacht was docked.Shortly after Congress approved the funding, Cunningham told Copley News Service he was fulfillinghis duties as a member of the subcommittee.It was not, he said then, because the beautification project would benefit an area he calls home when heis working in the nation's capital. It was, he said, because then-Speaker Newt Gingrich "said he wants tomake D.C. a shining city, and so I said, 'OK, ... I want to clean up the waterfront' ... not for DukeCunningham," he added. "I haven't got a nickel invested."As Cunningham's office tries to deal with questions about Wade's yacht, a controversy continues to swirlaround the sale of the congressman's Del Mar house. Real estate professionals in San Diego havequestioned the sale's circumstances, saying their review of the comparable sales do not support the pricethat Wade paid Cunningham in November 2003.Wade purchased the house after seeing a list of comparable home sales in the area, according toCunningham, who characterized the sale as "aboveboard" by saying that a list of comparable homes wasprovided.A broad list of home sales during the approximate period of the sale and in the approximate geographicarea ranges between $700,000 and $1.7 million.However, several San Diego Realtors and appraisers who reviewed the Multiple Listing Service recordsduring the period said the comps, which include pictures of the interior and exterior of the homes, showthat the house was worth less than $1 million when Wade paid Cunningham $1,675,000."There is no logical explanation of comps that could have supported a value of $1,675,000 in November2003," San Diego real estate appraiser Todd Lackner said after reviewing the records. "There was onlyone house sale that sold in this price range for $1,665,000 on June 11, 2003. This was an incrediblysuperior property. The true comps in November 2003 would have been closer to the lower $900,000range."Wade put the house back on the market for $1,680,000 in November 2003 during a period when housesfrequently were drawing multiple bids above the asking price as soon as they were placed for sale.However, the Del Mar house stayed on the market for more than eight months before selling in October

http://signonsandiego.printthis.clickability.com/pt/ cpt?action=cpt&title=FBI +looking+at+s... 7114/2005
http://signonsandiego.printthis.clickability.com/pt/http://signonsandiego.printthis.clickability.com/pt/


8/59

FBI looking at sale of Cunningham home I The San Diego Union-Tribune Page 3 of32004 for $975,000.After reviewing the comps, Realtor Jacque Baker of Prudential Cal Realty put the value ofCunningham's Del Mar home in November 2003 at "less than $1 million," citing two properties ofroughly the same size that sold for about that price even though they had upgrades - and, in one case,panoramic ocean views - which Cunningham's house did not.Cunningham defended the transaction, saying an independent source had set the asking price at$1,675,000. Wade, he added, accepted the asking price after looking at comps provided.The Realtor who set the price and provided the comps, Elizabeth Todd of Willis Allen Co. in Del Mar,has been one of Cunningham's longtime political contributors, as her husband, Whitney, and herhusband's late father, Richard, have been.While Todd furnished the asking price and the comps, she was not officially a party to the transaction,which was a private deal without Realtor representation on either side.However, immediately after the sale of the Del Mar house, Cunningham hired Todd, who received herreal estate license in April 2002, to help him buy a $2.55 million estate in Rancho Santa Fe. Thatpurchase was her first real estate transaction, according to California real estate records.Meanwhile, a spokeswoman for the Democratic Congressional Campaign Committee said yesterday thatthe organization is looking closely at targeting Cunningham'S seat in next year's election."This certainly adds to his vulnerability," spokeswoman Sarah Feinberg said of Cunningham's housetransaction."It's fair to say we're looking closely at the district and talking to possible Democratic candidates, andwe believe it's a district we can look at winning."Cunningham's 50th Congressional District, which is heavily Republican, has long been considered safefrom a Democratic challenger.

-Copley News Service correspondent Dana Wilkie contributed to this report.

Find this article at:htlp:llwww.signonsandiego.com/uniontrib/20050617/news_1n17duke.html

Check the box to include the list of l inks referenced in the article.

http://signonsandiego.printthis.clickability .com/pt/ cpt?action=cpt&title= FBI+looking+at+s... 7114/2005
http://signonsandiego.printthis.clickability/http://signonsandiego.printthis.clickability/


9/59

EXHIBITC


10/59

Los Angeles TimesCopyright 2005 Los Angeles Times

June 24, 2005Cunningham Breaks Silence Over Real Estate Deal

By Tony Perry

SAN DIEGO -- Rep. Randall "Duke" Cunningham, R-Calif.,after a weeklong silence about hiscontroversial home sale to a defense contractor, issued a statement Thursday saying that heshowed poor judgment in selling the house to "a friend who does business with the government."Vowing to fight to defend his reputation, Cunningham said he did nothing wrong and that henever gave preferential treatment to the contractor's firm.Cunningham, who has also been criticized for living on the contractor's 42-foot yacht, the DukeStir, said he paid $13,000 in the past year in berthing fees and maintenance costs. Living aboardthe yacht for free would violate ethics laws.After releasing the statement, the 63-year-old, eight-term congressman declined, through aspokesman, to answer questions and said all further inquiries should be directed to hisWashington, D.C., attorney. The house sale is being investigated by the FBI."I would never put the interests of a friend or a contractor above the interests of my country,"said Cunningham's statement. "I trust that the facts will bear out this truth over time."Cunningham sold his home in the Del Mar Heights neighborhood of San Diego to WadeMitchell, president and chief executive of Washington-based MZM Inc., for $1,675,000 inNovember 2003.Wade sold the home seven months later for $975,000, a $700,000 loss. Critics contend that Wadepaid an inflated price as a way to reward Cunningham for backing MZM's bid for lucrativedefense contracts.The company has more than $66 million in federal contracts, most to provide sophisticatedintelligence gathering and analysis. MZM's political action committee contributed $7,000 toCunningham's 2004 re-election campaign.In his statement, Cunningham repeated previous assertions that the sale was based oncomparative sales figures developed by a real estate agent with a reputable firm. He said Wadewanted to buy a home in San Diego because MZM was beginning work on a classified project atthe Miramar Marine Corps Air Station.


11/59

Cunningham said he and his wife, Nancy, an official with the U.S. Department of Education, hadbecome friends with Wade and his wife, Christiane. Their friendship led the Cunninghams tohelp with a foundation that the Wades founded to help refugee children, the statement said.The statement said any suggestion that he secured contracts for Wade's company or improperlyinfluenced the awarding of contracts was" simply false."A watchdog group, Citizens for Responsibility and Ethics in Washington, has filed a Freedom ofInformation Act request for records of contacts Cunningham has had with Pentagon andDepartment of Homeland Security officials about MZM.Francine Busby, Cunningham'S Democratic opponent in last November's election, said thatCunningham'S response did little to clear up ethical questions raised by Cunningham and hisconnection to Wade and MZM."Coming clean is more than just admitting what everyone already knows," she said. "It's aboutshowing that your actions meet the high standards of honesty and integrity."Republicans defended Cunningham."When this is all over, I think the final story will be exactly what Duke says: he made an en-or injudgment and showed naivete in real estate but he's done nothing wrong and has always putAmerica first in everything he's done," said Rep. Darrell Issa, R-Calif.Issa backed Cunningham's statement that no member of Congress is powerful enough toguarantee that a defense firm will receive a contract."We all champion particular technologies or companies whose products we have confidence in,"Issa said in a telephone interview, "but not even a full committee chairman can put a companyinto legislation."Cunningham serves on the Select Committee on Intelligence, the Military AppropriationsSubcommittee and as chairman of the Subcommittee on Human Intelligence, Analysis and CounterintelligCunningham said he knew that Wade wanted a home near the Miramar base and had a real estateagent send him a list of prices for comparable homes."At the time of the sale, I failed to adequately consider how this transaction might be perceivedby others who don't know me," Cunningham's statement said. " ... Again, I recognize that Ishowed poor judgment in not listing the house publicly for sale."Wade and Elizabeth Todd, the agent who provided the comparableprices, have not responded to repeated requests for interviews.


12/59

EXHIBITD


13/59

.: Print Version:. Page 1 of2Editions of the North County Times Serving San Diego and Riverside Counties Thursday, July 14,2005 Contact Us

News Search Web Search Classified Search Circulation Reader Services Traffic StocksHome NewsSubscribe

BusinessPrevious Issues

EntertainmentLetters Obituaries

Features Columnists CorPlace An Ad Send Feec

[ Print Page 1Thursday, July 14, 2005

Last modified Monday, June 27, 2005 8: 57 PM PDT

Duke Stir rent would add $600 monthly, analyst saysBy: WILLIAM FINN BENNETT - Staff WriterBased on current market rates, Rep. Randy "Duke" Cunningham should be paying roughly$600 a month more than he already pays to live on a Washington yacht belonging to adefense contractor, a specialist in yacht sales said Monday.While Cunningham said in a Thursday news release that he is paying berthing andmaintenance fees to stay on the boat, market values suggest he also should be paying rent,said a specialist with San Diego-based Cabrillo Yacht Sales.Under increasing fire for a real estate deal with the president of the Washington defense company MZM, Inc. andthe use of his 42-foot yacht ---- the Duke Stir ---- Cunningham issued a written statement to defend himself onboth issues after nearly two weeks of silence on the matter.In the written statement, Cunningham stated that he has paid more than $8,000 in docking fees and more than$5,000 in maintenance fees over the past 15 months to Mitchell J. Wade."There was nothing improper about my arrangement with Mr. Wade because I paid these monthly fees and costsin lieu of rent," he stated in the release.On Monday, the North County Times obtained more information about the boat. U.S. Coast Guard records showthe yacht was manufactured in Pulaski, Wis. An official with Carver Boat Corp., which is headquartered in thatcity, said that company did manufacture the 42-foot vessel, which has an aft cabin and weighs 34 tons.Running a search on the yachtworld.com database used for boat sales that is similar to the Multiple ListingsService used by real estate agents, Cabrillo Yacht Sales' Arlan Brown on Monday pegged the market value ofthe Duke Stir as running roughly between $130,000 and $165,000.Based on that range of values and including the probable cost of insurance for the boat, Brown said that inaddition to the maintenance and docking fees, the rental market value of the yacht would mean that the tenantshould be paying approximately $600 more a month.He noted that in addition to the rental cost of a boat, if it is docked at a marina, there is usually an additionalcharge involved for anyone who lives on board. In San Diego, for example, those live-aboard fees generally runbetween $125 and $275 a month, Brown said.In his prepared statement, Cunningham said that he has been living on the boat since roughly April 2004. If themarket value of the additional rent he should have paid is in fact $600, that would mean that he has saved about$9,000 in rental costs.House Ethics rules prohibit any member of Congress from accepting any gift of more than $50.

http://www.nctimes.comlarticles/2005/06/2 S/news/top _ stories/62 705202602. prt 7114/2005
http://www.nctimes.comlarticles/2005/06/2http://www.nctimes.comlarticles/2005/06/2


14/59


An official with Washington-based budget watchdog group Taxpayers for Common Sense said Monday the latesttwist in the boat story simply reinforces the perception of wrong doing,"It's further confirmation that Duke Cunningham has profited from his relationship with Mitchell Wade and raisesa series of ethical and legal questions," said Keith Ashdown, Common Sense vice president of policy andcommunications.Calling Cunningham's prepared statement on the real estate deal and the boat "pure public relations," Ashdownsaid, "He is saying that he paid for all these things, but telling the story in such a way to make himself lookinnocent; we can't rely on the spin of the Congressman,"Between fiscal year 2002 and fiscal year 2004, MZM Inc, received nearly $112 million in federal defensecontracts, Ashdown said that his organization conducted a careful review of 90 defense contracts MZM receivedin that period, Of the 90 contracts Ashdown reviewed, all but five of them were without competitive bidding, hesaid,Cunningham sits on the House Appropriations Committee's Defense Subcommittee, which plays a key role indetermining which defense firms receive many contracts, Washington insiders have said that individual memberscan and do influence which firms receive contracts,Cunningham has declined numerous interviews to talk about his connections to MZM and how much, if any, rolehe had in helping steer business to the company, Through written statements, however, Cunningham has deniedthat he was instrumental in obtaining business for MZM,On Monday, Cunningham's chief of staff, Harmony Allen, referred all calls concerning Cunningham to hisWashington-based attorney K, lee Blalack, Blalack called the North County Times late Monday but said: "We donot have a comment on the matter."The story on Cunningham's ties to Wade first surfaced two weeks ago with newspaper accounts of Wade havingpurchased Cunningham's Del Mar horne in December 2003 for $1 ,675 million, In October 2004, Wade sold thehouse for $975,000 ---- a $700,000 loss, Also in December 2003, Cunningham bought a much larger home inthe exclusive community of Rancho Santa Fe, for $2,6 million,In his Thursday statement, Cunningham wrote that when he sold his Del Mar home to Wade, he relied on theadvice of a local Realtor, who provided him with comparable sales in the area, Those comparables showed thatthe $1,675 million price was in line with market values at the time, Cunningham wrote, However, a local titlecompany recently reviewed sales records for similar-sized properties in the same area between March andDecember 2003, showing that the average sales price was $1,12 million ---- more than a half-million dollars lessthan Wade paid for Cunningham's home,News reports surfaced last week that both the FBI and the U,S, Attorney's office in San Diego are investigatingthe real estate transactions,Contact staff writer William Finn Bennett at (769) 740-5426, or

http://www.nctimes.comJartic1es/2005/06/28/news/top_stories/62705202602.prt 7114/2005
http://www.nctimes.comjartic1es/2005/06/28/news/top_stories/62705202602.prthttp://www.nctimes.comjartic1es/2005/06/28/news/top_stories/62705202602.prthttp://www.nctimes.comjartic1es/2005/06/28/news/top_stories/62705202602.prt


15/59


16/59

MZM 527 Gave to Just One Lawmaker Page 1 of2

MZM 521 Gave to lust One LawmakerJuly 13, 2005By Ben Pershing,Roll Call StaffThe defense contractor whose ties to Rep. Duke Cunningham (R) prompted a federal investigationhas used a variety of methods to donate more than $50,000 to the California lawmaker since 2000.A review of Federal Election Commission and IRS records showed that Mitchell Wade - the founderand, until recently, CEO of the firm MZM Inc. - directed contributions to Cunningham from a 527account and from MZM's own corporate coffers as well as from himself, his wife and MZM's politicalaction committee,

Cunningham, in turn, received those donations using three entities: His re-election committee, hisleadership PAC and his own 527 committee.The complex web of donations sheds new light on the relationship between Cunningham and Wade,whose dealings are now the subject of a federal grand jury probe in Southern California.That investigation was sparked following news reports that Wade had purchased Cunningham's SanDiego-area home for what some observers have called an inflated price of $1.68 million. Waderesold the house at a $700,000 loss.Cunningham has also been living on a boat owned by Wade docked at the Capital Yacht Club inWashington, D.C Federal agents recently raided the boat as well as Cunningham's San Diegohome and MZM's office near Dupont Circle.Cunningham has acknowledged helping MZM get federal defense contracts, though he hasadmitted only that he showed "poor judgment" in selling the house to Wade and has denied anywrongdoing.The financial relationship between Cunningham and the defense firm appears to have begun in2000, when MZM gave a direct $5,000 corporate contribution to the American Prosperity PAC StateFund, a non-federal account created by Cunningham under Section 527 of the tax code.MZM gave another $10,000 to Cunningham's 527 in 2001. That same year, the defense companycreated two new entities: MZM PAC, a federal committee registered with the FEC, and the EagleGroup, a 527 self-described as "connected" to MZM on its filings with the IRS. Both committees areregistered at 1523 New Hampshire Ave. NW, the address of MZM's headquarters.Since it was formed, IRS records show that the Eagle Group has received just one contribution, a$10,000 donation in 2002 from MZM. And the Eagle Group has given out just $7,000 - $5,000 toCunningham's 527 and $1,000 apiece to the D.C. Republican Committee and the campaign accountof D.C. City Councilman David Catania, all in 2002.In total, Cunningham's 527 received $20,000 in soft money from MZM. That represents less thanhalf the money the Congressman has raked in from the firm, which has been even more generous

http://www.rollcall.com/issues/cgi-binludt/im.display.printable?c1ient.id=rollcall&storYid .., 7114/2005


17/59

MZM 527 Gave to Just One Lawmaker Page 2 of2

with hard dollars.Since 2001, MZM PAC has donated $10,000 to American Prosperity PAC (Cunningham's federalleadership committee), and another $12,000 to Friends of Duke Cunningham, the lawmaker's re-election account.Copley News Service has reported that former MZM employees have alleged they were pressuredto donate to MZM PAC by Wade. Both the PAC and several of the company's employees gavesignificant contributions to Reps. Virgil Goode (R-Va.) and Katherine Harris (R-Fla.). Bothlawmakers have since offered to refund the contributions of any donors who felt pressured to giveto them.Beyond the various federal and non-federal committees. Wade and his wife, Christiane Wade, havealso opened their wallets for Cunningham. Mitchell has personally given $6,000 to the lawmaker'sre-election since 2001, while Christiane has chipped in $4,000.MZM did not return a call seeking comment for this story.

Copyright 2005 Roll Call Inc. All rights reserved.

http://www.rollcall.comlissues/cgi-binludt/im.display.printable?c1ient.id=rollcall&story.id. .. 7/14/2005
http://www.rollcall.comlissues/cgi-binludt/im.display.printable?c1ient.id=rollcall&story.id.http://www.rollcall.comlissues/cgi-binludt/im.display.printable?c1ient.id=rollcall&story.id.


18/59

EXHIBITF


19/59

flht j oan lJit90u " , i r r i b u n t .Contractor who bought Cunningham's house madeemployees give political contributionsBy Marcus SternCOPLEY NEWS SERVICE6:39 p.rn. June 20, 2005WASHINGTON - A defense contractor who took a $700,000 loss on the purchase of Rep.Randy Cunningham's Del Mar residence in 2003, and provided a yacht for his use in thenation's capital, forced his employees to make political contributions that benefited the SanDiego Republican and other members of Congress, according to three former senior officialsof the company.The former employees ofthe defense contractor, MZM, Inc., said separately that its founder,Mitchell Wade, routinely forced employees to give political donations."Bythe spring of '02,Mitch was twisting employees' arms to donate to his MZMPAC,"saidone senior former employee. "Wewere called in and told basically either donate to the MZMPACor we would be fired."Campaign finance laws prohibit employers from compelling their workers to contribute tothe company's political action committee (PAC).They may encourage contributions, but notcompel them by threats."It is illegal to solicit campaign contributions for the company's political action committee bythe use of threats, force or threat ofjob reprisal," said Larry Noble, director of the Center forResponsive Politics, a nonpartisan organization that closely follows the flowofmoney topoliticians. "I f they say to somebody, 'You either give or you are going to be fired,' they haveviolated the law."The three former MZMofficials declined to be identified for this article, describing Wade asvindictive and saying they feared for their careers if their names were disclosed. MZMpaidits employees double or triple what they could make elsewhere, making the contributions acost of doing business for them, they said.Company officials failed to respond to requests for comment.Wade reminded employees before their anniversary date to contribute a designated amountto the company PAC,one ofthe former company officials. The specific amount was based ontheir level of seniority in the company, with more senior officials expected to give $1,000each and less senior employees expected to give $500, the former official said.


20/59

A third former employee of MZM described being rounded up along with. other employeesone afternoon in the company's Washington headquarters and told to wnte a check WIth thepolitical recipient standing by. The former employee didn't give the name of the politicianreceiving the donations."When they solicit contributions to the political action committee, they are supposed to saythat the contribution is voluntary," Noble said of employers seeking contributions fromemployees for the company's PAC. "They are allowed to suggest an amount to give but theyhave to say you can give more or less, or nothing at all."And they have to say that there will be no job reprisals for not giving. So even being silent onit, and soliciting contributions, is actually, technically a violation of the law. But when you goto the other side and you threaten them, they can be subject to criminal prosecution," saidNobel."Normally we talk in campaign finance law of civil violations, of paying a penalty," saidNobel. "But you can also be criminally prosecuted. Criminal prosecutions come in when youhave knowing and willful violations. Those are the really egregious ones. And I can't sayspecifically, because I don't have all the facts of the case, but it sounds you're getting to onethat may very well be a knowing and willful violation."MZM's PAC donated $17,000 to Cunningham during the 2002 and 2004 election cycles,covering a total of four years. The donations included $6,000 to his campaign in each cycleand $5,000 to his leadership PAC, the American Prosperity PAC. MZM's PAC also gave$1,000 to Rep. Duncan Hunter, R-El Cajon, during the 2004 election cycle.MZM officials also made personal contributions to Cunningham and several otherlawmakers, outside of MZM's PAC. For instance, Wade himself made four contributions toCunningham during 2001and 2002 totaling $2,000. During 2003 and 2004, he made threecontributions to Cunningham totaling $6,000. These contributions, made outside MZM'sPAC, have raised no ethical questions.But MZM officials and their family members combined to give two other lawmakerssubstantial contributions through both the MZM PAC and through individual contributionsmade outside the PAC.MZM's PAC gave Reps. Katherine Harris, R-Fla., and Virgil Goode, R-Va., $10,000 eachduring the 2004 election cycle. Separately, MZM officials and their family members gaveHarris a total of $44,000 during the 2004 election cycle and they gave Goode a total of$27,601during the same period.MZM has a facility inside Goode's rural Virginia district, not far from a government facilitythat is one of MZM's customers, the Army's National Ground Intelligence Center inCharlottesville.MZM also is planning to buy a facility in Harris' district, where it can be close to two othercustomers, the U.S. Central Command, which oversees the ongoing wars in Iraq andAfghanistan, and the Special Operations Command.Cunnin~h~m is on the Permanent Select Committee on Intelligence and the defenseappropriations subcommittee, which puts him in position to influence the awarding ofdefense intelligence contracts.


21/59


22/59

EXHIBIT G


23/59


24/59

Lawmaker-Contractor Deals Questioned Page 2 of3

The North County Times quotes the club's dock master as saying that Duke Stir replaced Cmmi~gham'sown boat, the Kelly C, in the slip on the Potomac. The Kelly C was presumably away for refurbishment,the newspaper said. Robert McKeon, the club's commodore, declined to comment yesterday.MZM and Wade also donated money to Cunningham's reelection effort. The company and its affiliates,for instance, contributed $20,000 in "soft money" to Cunningham's American Prosperity PAC StateFund between 2000 and 2002, according to PoliticalMoneyLine.com.Cunningham's ties with MZM go further. The congressman was the keynote speaker at MZM'sChristmas party for 385 people at the Four Seasons Hotel in Georgetown last Dec. 8, where he helpeddispense silver dollars to recovering Iraq war veterans whom the company invited to the festivities,according to an attendee who spoke on the condition of anonymity.Cunningham also is listed on the Web site of the Sure Foundation, a charitable group with ties to MZMand Wade, as a member of an "honorary committee" for the Foxfield Races. The twice-yearlyCharlottesville horse race raises money for the foundation.Nancy and April Cunningham are among four people listed on the foundation's Web site as members ofthe "advisory council." Nancy is the name of the lawmaker's wife, and he has a daughter named April.The foundation, which tax forms said was created with a loan from Wade, lists its address as MZM'sheadquarters in the District. Wade is listed on the foundation's Web site as the foundation's treasurer andhis wife, Christiane, is named as its "president emeritus."MZM also has ties to Rep. Virgil H. Goode Jr. (R-Va.).In the 2004 election cycle, Goode's largest contributor was MZM; its political action committee and itsemployees, including Wade, gave a total of $48,551, according to the Center for Responsive Politics.Goode was the principal sponsor of a provision in 2003 defense legislation that called for the creation ofa military center in his district, known as the Foreign Supplier Assessment Center, which MZM washired to run, said a senior defense official, who spoke on the condition of anonymity because of thesensitivity of the matter.The official added that the center, which is meant to check on the ownership of foreign companies thatcontract with the Defense Department, will do useful work, but was not a Pentagon priority and was notrequested by the Defense Department. It was mandated by Goode on MZM's behalf, the official said.A November 2003 press release by Virginia Gov. Mark R. Warner (D) said Goode was "instrumental insecuring this project for Virginia." Goode himself, in the release, said, "I believe that MZM will add anew dimension to the economy of Martinsville," where the center is located.In March, April and May of 2003 -- the year that Goode sponsored the legislation, Wade, his wife,MZM officer James C. King, and King's wife gave Goode's election campaign a total of$12,000,according to Politicallvloneyl.ine.com, MZM's political action committee also donated $10,000 toGoode's campaign in 2003.Goode's office did not respond to requests for comment.Wade founded MZM 1993. Last fiscal year, the firm had about $65 million in Pentagon contracts,

http://www.washingtonpost.comlwp-dynlcontent/artic1e/2005/06/16IAR2005061601414_p... 711412005
http://www.washingtonpost.comlwp-dynlcontent/artic1e/2005/06/16IAR2005061601414_p...http://www.washingtonpost.comlwp-dynlcontent/artic1e/2005/06/16IAR2005061601414_p...


25/59

Lawmaker-Contractor Deals Questioned Page 3 of3

ranking it among the 100 largest federal information technology contractors, according to WashingtonTechnology magazine.Researcher Richard S. Drezen contributed to this report.

2005 The Washington Post Companythis?

Locate Nancy A CunninghamCurrent address and phone number available. Instant results.www.usa-people-eearch.comLocate Nancy CurminghamCurrent address and phone number available. Instant results.www.usa-people-search.cornFind Nancy A $9.95Get current information on this person instantly.www.peoplefinders.com

http://www.washingtonpost.comlwp-dynJcontent/article/2005/061l61 AR200506160 1414_p... 7114/2005
http://www.usa-people-eearch.com/http://www.usa-people-search.corn/http://www.peoplefinders.com/http://www.washingtonpost.comlwp-dynjcontent/article/2005/061l61http://www.washingtonpost.comlwp-dynjcontent/article/2005/061l61http://www.washingtonpost.comlwp-dynjcontent/article/2005/061l61http://www.peoplefinders.com/http://www.usa-people-search.corn/http://www.usa-people-eearch.com/


26/59

EXHIBITH


27/59


28/59


29/59

SignOnSanDiego.com > News> Metro -- Boat sale by 'Duke' made him $400,000 Page 3 of 4

provided the mortgage loans to the congressman when he bought his $2.55 million home in Rancho SantaFe.He insisted the loans were at "normal rates." Kontogiannis said he earlier this year paid off a $500,000second mortgage on that home, primarily using money he said he owed Cunningham for the yacht."We accumulated all the money and paid the second mortgage off ... on the fifteenth of March," he said.Cunningham never listed the mortgage debt on his congressional financial disclosure forms, though he wasnot required to do so. (Members of Congress are are not required to list or provide details on their personalresidences or personal property.)Kontogiannis said the rate on the $500,000 loan was about 10percent and the rate on a $595,000 loan was"maybe around 6 or 61/4."Weiser said the Kelly C, whose twin engines are considered too small for a 65-foot yacht, never left its slip.Kontogiannis agreed that the flat-bottomed boat could not handle the ocean, and said he used it primarilyfor dockside parties."It's basically a party barge," said marina mechanic Wes Iencierz. "It's something you'd take out into a river,drop an anchor and have a party."Iencierz confirmed yesterday that six weeks ago Cunningham showed up at the marina with his ownmechanic in tow, clearly indicating that he intended to buy it back. Cunningham's mechanic handed him along list of needed repairs.Shipyard employees had derided the Kelly C when it arrived at the Glen Cove Marina around August 2002because of its poor mechanical condition. The boat was rarely used while berthed at Glen Cove, according tomarina employees.Aboard the yacht yesterday, the repair list - or a similar list - could still be seen on the boat, which rests onwood blocks stacked three-high and is held aloft by adjustable metal braces.The door to the interior has a stylized "C" etched in the glass and the signs of the $100,000 refurbishingcould be seen in the blue carpeting, leather coach and well-crafted wood bar.The list of repairs included work on engine impellers, running lights, the anchor light and the filters.The co-owner of Consolidated Yachts clearly was uncertain about the future of the boat now thatCunningham has removed himselffrom the picture. "I could get stuck with the damn thing," said Wesly L.Rodstrom Jr. He said he called Cunningham called only a few days ago - either Thursday or Friday - to findout what was going on. "He said, 'Oh, I've got nothing to do with the boat.' "

.Contributing to this story was Copley News Service correspondent George E. Condon Jr. in Washington.

Find this article at:http://www.signonsandiego.com/news/metro/20050705-9999-1n5duke.htm I

Check the box to include the list of links referenced in the article.

http://signonsandiego.printthis.clickability .com/pt/ cpt?action=cpt&title=SignOnSanDiego.... 7114/2005
http://www.signonsandiego.com/news/metro/20050705-9999-1n5duke.htmhttp://signonsandiego.printthis.clickability/http://signonsandiego.printthis.clickability/http://www.signonsandiego.com/news/metro/20050705-9999-1n5duke.htm


30/59


31/59

.: Print Version :. Page 1 0[2

Editions of the North County Times Serving San Diego and RJverside Counties Wednesday, July 6, 2005 Contact Us

News Search Web Search Classified SearchHome News EntertainmentSubscribe Previous issues Letters Obituaries Place An Ad _~._" .._~.~.~~!~ee_c

" __ """""""_" __ """"" """""""""""" ... "_~_" " ... ""_~_~""_~ ~_" __ ~~"_""""""""""~~"_ _"_"~_ _ _ _ _"" __ ._ _" "_"""_ """"" __ .M" __ "_"_" """""""""""_~ __ _""""""""_"M"~ __ """_""""""

Circulation Reader Services Traffic StocksFeatures Columnists Cor

( Print Page]Wednesday, July 6, 2005

Last modified Tuesday, July 5, 2005 11 :41 PM PDT

Second boat deal surfacesBy: WILLIAM FINN BENNETT - Staff WriterQuestions continued to surface Tuesday about Rep. Randy "Duke" Cunningham's businessdealings, this time concerning a yacht that he sold to a New York businessman in 2002 ---- ayacht that U.S. Coast Guard records show is still registered in Cunningham's name.In fact, Coast Guard officials said Tuesday that in May, Cunningham requested and receiveda reissuance of the certificate of documentation, a document which shows him as theregistered owner.If the Coast Guard had evidence that someone other than the owner had been issued a certificate ofdocumentation, the document would probably be rescinded, a Coast Guard official said.In 2002, a company controlled by the family of New York businessman Thomas T. Kontogiannis bought theyacht, called the "Kelly C," from Cunningham for $627,000. Kontogiannis said Tuesday that he paid $30,000down and took over a $143,000 bank loan of Cunningham's that was outstanding on the boat as part of the deal.He added that he repaid the outstanding $454,000 balance as part of a deal to payoff Cunningham's mortgageon a new Rancho Santa Fe home.He added that he carried the note on the $454,000 balance owed.While he received a bill of sale on the boat, he asked Cunningham to retain the title on the yacht so that theoutstanding $143,000 bank loan would not have to be paid off immediately, Kontogiannis said."I asked him, 'Please, can I leave the boat in your name?' He said, 'OK, but I have a bill of sale,' " Kontogiannissaid Tuesday.He added that the purchase price was one dollar, plus other "valuable goods." After his family company, AxxiomLLC, bought the boat, he immediately transported it to a Long Island marina, where it remains, he said.In a report by Copley News Service on Tuesday, Kontogiannis said that at the time he bought Cunningham'sboat, he had spoken with the congressman for advice on seeking a pardon from President Bush for a 2002conviction for fraud. Kontogiannis and others had pleaded guilty to charges that stemmed from an allegedbribery scheme to obtain $6 million in computer contracts from New York public schools. Kontogiannis toldreporters that Cunningham had steered him to a Washington law firm that he could talk to about the matter.The 2002 boat sale, news of which broke in press reports Tuesday, is the latest twist in the ongoing controversysurrounding Cunningham and is indirectly related to two other business deals involving Cunningham that haveraised questions about his relations with a Washington defense contractor.When the eight-term Congressman sold his Del Mar Heights home to a company owned by the president ofWaShington-based MZM Inc. in late 2003, the $1.675 million sales price was apparently hundreds of thousands

http://www.nctimes.com/articles/2005/07 106/news/top _ stories/22 _12 _437_5_05 .prt 7/6/2005
http://www.nctimes.com/articles/2005/07http://www.nctimes.com/articles/2005/07


32/59

.: Print Version :, Page 2 of2

of dollars more than what other similar-sized homes were selling for in the area at that time, MZM PresidentMitchell J. Wade then resold the home for a $700,000 loss in October 2004.Those real estate transactions are believed to be the focus of an ongoing federal grand jury investigation intoCunningham's ties to Wade. On Friday, federal agents raided Cunningham's Rancho Santa Fe home in searchof documents, as well as MZM offices in Washington and another yacht that Cunningham had been living on inWashington until recently. That yacht, called the "Duke-Stir," is owned by Wade.

Questions have arisen whether Cunningham used his position on a powerful House subcommittee on defense tosteer millions of dollars in defense contracts to Wade's company and whether Wade's business dealings withCunningham were a payback for those contracts ---- allegations Cunningham has denied.Around the same time that Cunningham sold the Del Mar Heights home to Wade, he bought the 8,000-square-foot, Rancho Santa Fe home for $2.6 million. When he did so, he took out two loans for the purchase. Propertyrecords show that both loans ---- one for $595,000 and a second for $500,000 ---- were financed by New York-based Coastal Capital Corp., a company controlled by Kontogiannis' daughter and his nephew.Kontogiannis said that the loans were perfectly legitimate and at prevailing interest rates."Nobody did anybody any favors," Kontogiannis said. "I bought the boat, (but) both mortgages were recordedand there is no hanky-panky."On Tuesday, Cunningham's Washington-based attorney, K. Lee Blalack, had this to say about the boat sale toKontogiannis: "Duke's business dealings with Mr. Kontogiannis were entirely proper and any suggestion to thecontrary is simply false."A source close to the investigation said Tuesday that Cunningham had allowed the certificate, which must berenewed annually, to lapse in 2003. Recently, Cunningham approached Kontogiannis and began negotiating torepurchase the boat, the source said. In the expectation that the deal would go through, Cunningham thenapplied for a reissuance of the Coast Guard's certificate of documentation, the source said, adding that it was aclerical error.The fact that Kontogiannis' company applied with the Coast Guard in 2003 to receive documentation on the"Kelly C" shows that no one was trying to hide anything, the source said.Coast Guard officials on Tuesday confirmed that Axxiom had applied for the document in 2003. However, thecertificate was not issued because the company did not present any bill of sale or other documentation showingthat it owned the boat."We couldn't accept it because there wasn't any title Change," said Marcia A. Barrett, Coast Guard records andresearch manager.Coast Guard officials decided to reissue the certificate to Cunningham in May because Axxiom never respondedto a letter from her office asking for additional documentation that would prove its ownership of the boat, Barrettadded.Contact staff writer William Finn Bennett at (760) 740-5426, or

http://www.nctimes.com/artic1es/2005/07/06/news/top _ stories/22 12_437 5 05.prt 7/6/2005
http://www.nctimes.com/artic1es/2005/07/06/news/tophttp://www.nctimes.com/artic1es/2005/07/06/news/top


33/59

EXHIBIT


34/59

J UL- 07 -2 00 5 0 9: 11 NC TIMES NEWSROOM

AFfTMEI\IT OFCOAST GU"l10< :s e ( Fl e; V, 9 -9 7' )

APPUCA"llON FOR INITlAL ISSUE. EXCH~GE,OR REPLACEMENT Of CERllFICATE 6FPOCUMENTA~ONjREOOCUMENTA~qNONLYCASE NUMBER:CHECK ~ : (1 t c_ ,

=~~~~u!~~~~hlffi~rrn~VE$SIa~~~~~~N@~~F~~$JV,anFII..ING 1111$APf'L.ICATlON OOES NOT EWI1l. AveSSEL TO OOCUMENT~IJ~sQATaY CHANGES SOIJG\-fT ON ,. CEFt,.IFlCATE OF DOCUMENTATION. OfF!CIAl. NUM lestGNATEIJ ON T1"1ESASIS OF nilS APPLICAT10N ARE NO'T TR4NSrEfU.9LE. ON! Y f l o .URRENT CEFITIFIC!l .Tfi: OF bOCUMe.lTA110N ISVAL 10FOA VESSEL OpeRATION .

1 . . I . . . . .. . . ' -' ". ." ,_ a " ', ", ,

THIS SECTION FOA COAST GUAFIO uSE

A .. VESSEL NAME I. COMPLeTE FOR ALL APPLICA.TIONS

K e J \ ~C. NAME 0": MANAGING aWNe~f \ O ! . 1 \ 6 V (~Du.~'\ ,-u.nn\'j~rt"\TELEPHONE: t N \ o b ; Ie, A l~htfY"'OI .. ,T '!'I-E VEEL, lI'~PFlJ) lOEI.L .EP. 1 $ , . TH.AH SO J : J 1 i R0GS TON$: ,co,.". 0" W~ ~ O~ QU"'I.IFlCATJ(lN -,,",ACHED. I (1M) Cia'mFYTtu." 'I'lfe INll(JRlllATlllffON FILE IUH'H MGoIJ ID rCOOP"alATlVC .u.lIlIMUMeE!;If' m A" LETTBI REi lWHS IJHl:HANc:: :EP.

o BY A PAffi"'NERSHIP OR UMITED r..IAl3ILllY COMPANYA. GENERALPA~l'N~HIP O~ UMITEDL .I AB IL IT Y CQMP .t Il \I Y (LI..C)S . L ..L M IT EO pARTNERSHIP

o VESSEL OWNEO BY ~ CORPOAA"rIONB . e rnZ "r II ~ II " oF IIAIlIlJ.QE)IT (ANtII)'TKm CMIiS!" I ;U!CIJT1\ /E

Q F f llc : : E II !. I F ,t.Ift)C. ! ; :I T 'Q ;GMl I I II I OJ C W A U : I M A N OF T IleM :IAIIIl __ -_~o VESSEL. OWNED!!Y A COAf>OR~TION QUAlJF1ED ANDAf'PL 'fINS UNDER 46 CFA 68.01 (80WATER)o VESSEL OWNCD OR OF'ERATEO BY NO'YFOA-PFlOFrrOIL REcoveRY COOPeRATIVE

P.02

)oj, ENDORSEMENTS FOR WHICH AI=>PI,.ICJ.TIONIS MAPE.~ AEC~EA TlONALo REGISTRV

< IF . . ;J Fl e , _ 0 N J i 0 , IND lp o ,TE E 'S "T ' !M " "TECPeRc !' : . .. .-.ac; j eO f l ~ ) .o ~SHEAY 0O~STVIIISE (SOWATEA ONLy)!IIo OIL SPILL RESPONSE,o COAS1W151EUJIIOER CHJ\fITefi TO AN J :1 N T I T Y Q~AI.lr:=tGO~O ENGAGE1N C~ASTWlse 4(jAPF' usc B O . t COpy OF CHARTER ON FILE

WITH u.S.C.G. NATIONAI..VESSEL o.OCUM!!NTATION CENTeR .I "' AE ll l0 1) S 1 ;0 m O N O fl .S Q L tm ; ; U.S, COAST G UARD I $H 7!i30-DIH'OI-01100

I HEREBY cEF\TlFY THIS TO BE A TRU E COp'( -!OF THE RECORDS OF TRIS O Ff :IC E 1- -m.~~ ? b ) ~ ~ } 2 0 / 2 0 0 S 'rRr 17:24 (TX/RX NO 13861 Iai002


35/59

JUL-07-2005 09:12 NC TIMES NEWSROOM P.03V..,. ...,~ ...,-~","

E'\IEFISE of! CG -1 :2 58 rR E .V . 9 -9 7\I. PR. ;J1A,RY SEAVICEo COMME~CIAL FISt-lllllG BOATo rlSH PRoce:s~m,J1!: vesSLiLo FAEIGHr SHIP0F R EI G H T M A G i !':o INOUSTFUAlvEsselo MoBILE oFFSI10RE DRIWNG UNITDOl Fl5COVEAYo OFFSHOI=IE SUPPLY VESS~t.

o SC HO OL SH IPDTAr-tKlARGEo TA ....< . SHIPD lOWING VESSa.QUNCLASSIFIED VESSEL .. ~ ,....~AecA .. n_" f t t d " s j 1 h .

o PASSENGER (6 OFt F EWER )-SSENG~ (MQI:1C I r r . . . .N G )PASsENGER SARGE (6 OR FeNER)o PJ\SSENGEA lARGE (MORE THAN 6)o PueLlC ~REIGHTo PuauCTANKSIHIf'/SAROeo P1JBLICVESSa... l,lNCo RESEARCH vessa,

.J. PURPOSE Of' APPUCATION! ; 8 J 1. EXCHANGE OF Ct;;RTIRCATEOF DOCUMENTATION_o l!. R .E F> L AC IS M EN T O F LOST , WAONG!=Ul..L Y WITHHELD O R M UTlL AiE O C ER TIFIC ATE . OF DOCUMENi"A'TION_D3. FlETUAN"fa DOCUMENTATION FOunWING rU;LE1'ION, NAME OF VI;SSSl.. WHEN LAST DOCUMEN-rED:D "l. APPLIC"TION R>R OFFICIAL N UM B ER A ND FIRST CERTIFICATE OF IlOCUMENTATION, \ f5SSEl .DWAsaUllTAT IN~~ --- __ --OR M lClNTHI't'FNID ISUNOERCONSTRUCTION AT __ .....,..,..- ~ __ --_ANO ISsCIolEOULEDFOA OOMPlSTION IfIL..__

HULL MATSRIAJ...:0OOD 0TEEL 0IBROUS REINFORCED P1..ASTIC 0LUMINUM 0Of\lCRE1~o OTHER (DESCRIBE) ----~--------------,....-~~-~APPAO~MATeLEN~OFvSS$EL---- ---- ---- -----------~------------------PReVIOUS NAMES, NUMEI~AS. OR FOREIGN REGISl"RATIONS OF vesSEL ------~------~~-------

K. CeATIFIC~TION: I (We) ceRTl~ nlAT:(Al l AM (WE ARE) A CmZEN(S) OF 11-15UNITED $TJ\TiS AND LEa~l.LY AumOR1ZEP"I"O exeCI,JYf; THIS APP1.1CATI0fI lIN ' tHe

CAPACITY SHOWN; .(EI)THAT THE VESSa,(S) TO WHICH THIS APPLICATION APPlIES;(~ l8IHAS (HAvl:) aSSN MAru(ED OR 0 WII-L BE MARKEll

INACGORDANCEWITH 'THE DIReCTIONS IN THE INSTRUCTION SHEET (CQ1:2:SSA)FOA THIS APPUCATION;Iiil WIIJ.. A T AU. liMes AE~N UNPER l11E COMMAI\lO OF AU,S. CTTIZEN,UNl.SSS oOCUME!l fT'EO SOl.E! .Y WITH AAECRI5ATION-".L ENOOASEMI'!:NT.n i ~WILJ..NOT IiIE opeRA'T"EO 'N A l 'RAOE: NOT AUTHORIZED BY THE ENOOASE'M6NT(S) ON THE; CERTIF=ICATE(S) OFOOCUMeJllTATION;(iv) HAS NOT 8EeN REBUILT SINCE l.AS1' OOCUMEN'!'",nON(vI Tl-IE VESSEL IS .C i i l NOT TI1I.JaOUNDER A STAn: OR 0S TI11..EDUNDEA THE lAWS OF -..,.. ._..,.-:::-::-:-:--(C ) iHe NAUE(S)Of: TI iE VI$$S,. (S) WILL NOT aa CHANGED WITHOUT APPROVAL FROM NAjlONAL VltSSEL oOCUMENTATIONCENTER;ANO(D) (WE) WILL PROP.IIPTLYNOTIPf TI-IE NA.i10Nf,l. VESSEl.. OOCUMEI'lTA'I 'ION CENTEFI UPoN A CHANGE" IN ANY OFl'HE'NFOAM""OON OR REPA.eSSNTA'rIQN$IN THIS APPUC ....T10N. .~ .T~~C:.' ~ ~~ . C : ; C I : R ~ I ~ . = = ~!'i:;ii:~~~~(i~~' .

PRIVACY ACT STATEMENT.. ...ceoAO.AHce Wlf'" ~ U;9.c:. !li631, fI12I't!I.L.O""''' INl'OMlATlON 1 9 . PIIIOVI~ TOyou wtlElt I!UPPl.1flI 'l!O ~NIU.INFO"Wll1o.e TQ THEu.s. coa s : r QUAI!eI.1.b~- ~1"JCIT"T1011101' ntIS N'OR~TION ISAU'l'iiOllmlb In'.uus.e, r:HAnBf:!; ,;rj AND1:t.!i;46 u.ll.C;.APP.1I02 .....1 ' 1 _ .2. T!:I1lNNelMI Pllflrotju F'CII'I \ l l t l 1 I i ! : I ! THISIMFO-'TlON ISTOBEUS~ AM!,

!1} TO DI!f!:AIIINE Cfnu:"',1" CJI' TH ~ OF' 'nll'! WSS~ FOIIWJ1ICII AJlI 'UC: .I [TlOM FOR DOCUIIENTATWN I!I ~ 11140r.!) TCI OETI ; . f tN lP l~ I!LIGJ8II.1l'T OF iKf!v~ 1'0 *'i! Doe\IMI!NI ' I!D \III01f ""1; ' I1U>D1l EllQ(J1I:!!:~ ! ;(I lI l; :WT_,. TN!! "RlaIIlJ! ~ wHlC;H lUI'" bE Il IAD" OF THIS lNI'BMlATlON INCLUOEMLD.ilE TO ~w atFOAC;fJo1Etfr OI'F~ TO TilE o E l ' l e P l J o L PUIilUC UIII:IeRFm!IiDI:I'" Ill"INFQII . .. .. "CI" I ACT. ~t:I"fa P1. I8Lt :I IH I fjFo IlUA 'nOJI A IIO" '" U ,1 DOCiJIIEHTBp ~"I.$. Cl&$CI.I)N~1i 01' 1'11111...,g~~ JIIljIlLl~_C!!I~ I'CIRII a a VIO! .I ,INrAl lY . I tC l~1\ FAJU/RE ;"TC I PROV lD I! !"TMt: ; JHFCI l . .. . -OOl l I 'I !QUr:stHJ lI II I.L. MSULT ' " ~ QI'"I'""A,PPt .ICAfiCIN ~Oll DQCIJNEHTl nON. 1 'J H1 ~ M A Y'J'OIl:"-T T HE O ~ I ' R " " OP~"MC ' T ' I 1 f ! "~lllf A !;It>l:C(Fll;lt'!YO.Tl'IE COAST GU4f!D esnWA"te'i l ' H . A . T THE AVEAAGE eUADEN FOFlllilS FORM IS &J ~JNLrTEs. YOU MAY sU&M1T AAY COMMaIITScOI' ICeFlNlNG 'n' IE ACCURACy Of 'THIS BURDEN E$TlMAlE. OR IIA"~ SUG;SernONS FOA hl!'DUCING Tl1E 8uAOEN TO, NAll0NAL. V~El.DOCUMENTAnON cel\l11


36/59


37/59

EXHIBITK


38/59

Developer Helped Congressman By Buying Boat, Arranging Loan Page 1 of3

washtll9tonp_() ! !OtcomDeveloper Helped CongressmanBy Buying Boat, Arranging LoanBy Charles R. BabcockWashington Post Staff WriterTuesday, July 5, 2005; A02Thomas T. Kontogiannis, a Long Island developer,says he doesn't particularly like politics, so he neverdoes business with the federal government. Still, he hitit off with Rep. Randy "Duke" Cunningham years ago,and recently Kontogiannis bought Cunningham's 65-foot yacht, the Kelly C, and helped the CaliforniaRepublican finance a house.The developer says the transactions are nothing like Cunningham'S dealings on another house and yachtthat are the subject of a federal investigation. A federal grand jury is examining Cunningham'srelationship with Mitchell 1. Wade, a Washington defense contractor who bought a home fromCunningham, possibly at an inflated price, and then let the congressman stay rent-free on Wade's 42-footboat, the Duke-Stir, while in Washington.The transactions between the congressman and Kontogiannis are not fully documented in the publicrecord or the congressman's financial disclosure. Cunningham, for example, is still listed as the owner ofthe Kelly C, with his address listed as the home he bought more than a year after Kontogiannis said hebought the yacht from the congressman.Kontogiannis, of Glen Head, N.Y., said in interviews this weekend that he bought the Kelly C, a boat onwhich Cunningham used to live while Congress was in session, for $600,000 in summer 2002.Kontogiannis spent $100,000 more redecorating it the next year at the Glen Cove marina but didn't use itexcept for dockside parties, he said, because it wasn't stable in rough seas. Kontogiannis said he nevergot around to changing the title on the boat from Cunningham's name to his.Then in late 2003, Kontogiannis said, when Cunningham bought a $2.55 million home in Rancho SantaFe, the congressman asked if a mortgage company owned by Kontogiannis's nephew and daughter couldfinance $1.1 million in mortgages. The congressman bought that house shortly after Wade paid $1.675million for Cunningham'S previous home in Del Mar. Wade then sold that house for a $700,000 loss.Kontogiannis said he recently paid off a $500,000 second mortgage on the Rancho Santa Fe home at thecongressman's request, mostly with money he owed Cunningham for the yacht.There is no mention of Kontogiannis's debt to Cunningham on the congressman's financial disclosurestatements.Cunningham's lawyers, K. Lee Blalack II and Mark Holscher, said in a written statement that thecongressman's "business dealings with Mr. Kontogiannis have been entirely proper."Cunningham called and visited the Long Island marina a month ago -- before news stories about Wadeappeared -- to arrange for repairs so he could take the Kelly C back to Washington.

http://www.washingtonpost.com/wp-dyn/contentiarticle/2005/07 104/AR2005070400967 _p... 7114/2005
http://www.washingtonpost.com/wp-dyn/contentiarticle/2005/07http://www.washingtonpost.com/wp-dyn/contentiarticle/2005/07


39/59


40/59

Use of congressional seal on knife questioned1)r~ii,Il;'(?olihty Times - North San Diego an., Page 1 of 4' . ~ , ; ' : ; ', , ~ : . : '; o : , . , : ; : ; '~ .

Editions of the North County Times Serving San Diego and Riverside Counties Thursday, June 30, 2005 Contact Us

News Search Web Search Classified Search Advertising Circulation Reader Services Traffic StocksHome NewsCoastal Inland

Business Entertainment FeaturesCalifornian Nation IWorld Special Reportstate IWest

Columnists CorMilitary Letters C

News: Top Stories

Use of congressionalseal on knifequestionedBy: MARK WALKER - StaffWriterAs if he didn't have enoughproblems, U.S. Rep. Randy"Duke" Cunningham also isfacing questions over use ofthe congressional seal on a$595 Buck knife that he sellsthrough a company he owns.The company, Top GunEnterprises Inc., wasestablished in 1987, primarilyas a vehicle to sell "Fox Two,"a book Cunningham publishedabout his experiences as afighter pilot during the Vietnam War.

Last modified Wednesday, June 29, 2005 11 :09 PM PDTEmail this story Comment in our B/og

Keyword SearchI g O ! 1

Print this story- - - - - - - - - - - - - - - - - -

On the company's Web site, www.topguninc.com. Cunningham advertises the knives asincluding the seal of the U.S. Congress.Federal law prohibits use of the seal on commercial products unless Congress has givenexpress consent. There is no record of Congress' ever giving approval for use of the sealon the knives.Cunningham, R-Escondido, is the subject of a San Diego federal grand jury inquiry overhis dealings with Washington defense contractor Mitchell J. Wade and Wade's firm MZMInc.San Diego resident Richard W. Jones, listed as the operator of the Top Gun EnterprisesInc. on its Web site, said Wednesday that any questions about its products had to beaddressed to Cunningham, whose office referred the question to K. Lee Blalack, anattorney the lawmaker has hired to represent him in the grand jury proceeding.

http://www.nctimes.comJarticles/2005/06/30/news/top _stories/22 _31_286_29_ 05.txt

,More NewsCouple chargedwith murder, torture

in toddler's death'i# Cunninghamscheduled to addressEscondido RotaryUse of

congressional sealon knife questionedKaloogianheaded to IraqSurfers shoot forworld record inCarlsbadCarlsbad councilwaits to decide

Ponto visionOceanside manwas son of formerstate Sen. BillCraven

'iii Shooting victim'sfriends say he wasnot affiliated with

6/30/2005
http://www.topguninc.com./http://www.nctimes.comjarticles/2005/06/30/news/tophttp://www.nctimes.comjarticles/2005/06/30/news/tophttp://www.topguninc.com./


41/59

Use of congressional seal on knife questioned North County Times - North San Diego an... Page 2 of 4

Blalack said Wednesday that use of the seal was on his list of matters to be looked intobut that at this point he had no further comment.Ken Kellner, chief counsel for the House of Representatives Committee on Standards ofOfficial Conduct, also declined to comment Wednesday on use of the seal on the Buckknives.The "Randy 'Duke' Cunningham Fighter Ace Kalinga Style Buck Knife" advertised on theWeb site says it includes the emblem of the American Fighter Aces Association, anautographed picture of Cunningham in his flight suit and the "Official Seal of the UnitedStates Congress."Cunningham is sole owner of Top Gun Enterprises Inc., from which the lawmaker reportedearnings in the 12 months preceding May of between $15,000 and $50,000, according tohis latest financial disclosure report. Members of Congress are required to file thosereports each year.Federal law allows members of Congress to maintain business interests outside of theirofficial duties and mandates the annual reporting of earnings.Top Gun Enterprises Inc. says it had 1,000 of the knives specially manufactured. The sitefeatures a picture of Cunningham and Chuck Buck, founder of the Buck knife company,holding a case containing one of the knives.Contact staff writer Mark Walker at (760) 740-3529 or

scheduled to address Escondidoheaded to

C!ick here for daily newspaper deliveryClick here for daily online news alertsClick here to send a letter to the EditorClick here to send an Announcement

Re!atedSog Knives On Sale NowAwesome Prices On Sog Knives With Free Shipping Over 125.00www.savsonswordsandknives.com

SOG Knives on SaleHot Selection, High Quality Knives Save up to 25% & Low Flat Rate Shipwww.lheknifeconneclion.com

http://www.nctimes.comlartic1es/2005/06/30/news/top _stories/22 _31_286_29 _05.txt

gangsGrand jurycriticizes LakeElsinore practicesRedhawk

Bus fee proposedfor after-schoolactivitiesTuesday WorkGroup celebrates25th year ofimproving golfcourseTrial begins forlocal lawyer, wifeChildren treatedafter alleged methlab foundArtist invigoratedby work in desertCity Manager'ssalary to keepincreasingEducation

complex marches on

...more news

Arts & Entertainment

6/30/2005
http://www.savsonswordsandknives.com/http://www.lheknifeconneclion.com/http://www.nctimes.comlartic1es/2005/06/30/news/tophttp://www.nctimes.comlartic1es/2005/06/30/news/tophttp://www.lheknifeconneclion.com/http://www.savsonswordsandknives.com/


42/59

EXHIBITN


43/59


44/59


staffing agreement should clear the way for the committee to be fully operational after the August congressionalrecess. At that time, the newspaper said, the committee may launch an investigation into Cunningham.n Another Capitol Hill newspaper, Roll Call, reported in its "Heard on the Hill" column Thursday that Wade's boat,the one Cunningham said last week that he started living aboard in April 2004, was for sale.The newspaper, citing unnamed sources, said the sale of 42-foot Carver boat named the "Duke-Stir" wasspotted on a flier posted at the Capital Yacht Club.n The Sarasota Herald-Tribune in Florida reported that U.S. Rep. Katherine Harris was offering to refund areported $50,000 in campaign contributions from MZM Inc.Harris, a Republican and the former Florida secretary of state who was at the heart of the 2000 presidentialballot problems, was quoted in the newspaper as saying MZM employees made the contributions to hercampaign account and that MZM officials had told her the firm was planning to open a facility in Sarasota.Harris indicated that her desire to return the money was based on allegations that its employees were forced tomake the campaign donations to MZM's political action committee. Forced contributions are prohibited by federallaw.On Monday, a Washington, D.C., watchdog group headed by a former staffer to two House Democrats, filed acomplaint with the Federal Elections Commission alleging MZM and Wade were in violation of the FederalElection Campaign Act.Contact staff writer Mark Walker at (760) 740-3529 or

http://www.nctimes.comJarticles/2005/07/01/news/top_stories/20_01_596_30 05.prt 7/1 n o o . . : ; ;
http://www.nctimes.comjarticles/2005/07/01/news/top_stories/20_01_596_30http://www.nctimes.comjarticles/2005/07/01/news/top_stories/20_01_596_30http://www.nctimes.comjarticles/2005/07/01/news/top_stories/20_01_596_30


45/59


46/59

SignOnSanDiego.com > News> Politics -- Four from Washington yacht club subpoenaed ... Page 1 of2

com E:~PRtNTTH

Four from Washington yacht club subpoenaed inCunningham probeBy Seth HettenaASSOCIATED PRESS12:09 a .m , July 14, 2005SAN DIEGO - Two members and two employees of a Washington, D.C., yacht club where Rep. Randy"Duke" Cunningham lived aboard a defense contractor's boat have been subpoenaed to testify before afederal grand jury in San Diego investigating the congressman, according to a person with knowledge of theplans.The four who are flying to San Diego to testify Monday are the first witnesses known to be appearing beforethe federal panel that is gathering evidence on the eight-term Republican from Del Mar and his dealings withdefense contractor MZM Inc.Dockmaster Kelvin Lee is among the four witnesses from the Capital Yacht Club, according to the personwith knowledge of the subpoenas, who spoke on condition of anonymity. Lee declined to answer questionsWednesday. The club's commodore, Robert McKeon, who was not among the four named as witnesses, alsodeclined comment.Cunningham lived part-time at the Capital Yacht Club aboard a 42-foot yacht owned by Mitchell Wade,founder of the defense firm MZM Inc. Coast Guard records show Wade bought the boat from Scott F.Schramm, who is listed as the yacht club's rear commodore. Schramm did not return a message left seekingcomment.The congressman has said that instead of rent, he has paid at least $13,000 to cover dock fees and otherexpenses at the club since April 2004. Cunningham has yet to make good on his promise last month todivulge additional records on the boat payments. Living on Wade's boat for free would violate congressionalethics rules.Cunningham's attorney, Lee Blalack, declined to comment on the yacht club SUbpoenas. A spokeswoman forU.S. Attorney Carol Lam in San Diego did not return a messageThe yacht, which had been docked at the Capital Yacht Club, left its moorings Wednesday and was movingout of state, said a person with knowledge of the Duke Stir and who also spoke on condition of anonymity.That person said Wade had decided to sell the boat since Cunningham was no longer aboard and members ofthe private club had complained about the unwanted attention the Duke Stir was drawing.The boat began drawing attention following last month's disclosure that Wade had purchased Cunningham'SDel Mar home in 2003 for what may have been an inflated $1.675 million price. Wade sold it nearly a yearlater for $975,000 - a $700,000 loss in one of the nation's hottest housing markets.After the story broke, Cunningham was living for a short while out of his congressional office - not anuncommon practice on Capitol Hill - but had since found an apartment, Blalack said.

http;//signonsandiego.printthis.c1ickability .com/pt/ cpt?action=cpt&title=SignOnSanDiego.... 7/14/2005


47/59


48/59

EXHIBIT P


49/59

m memo 42597_ Page 1 of3April 25, 1997MEMORANDUM FOR ALL MEMBERS, OFFICERS AND EMPLOYEESFROM: Committee on Standards of Official ConductJames V. Hansen, ChairmanHoward L. Berman, Ranking Democratic MemberSUBJECT:Rules Governing (l) Solicitation by Members, Officers and Employees in General, and (2)Political Fundraising Activity in House OfficesIntroductionThe purpose of this memorandum is to reiterate and elaborate on the rules governing the conduct ofMembers, officers and employees of the House in two areas:solicitation of others -- i.e., asking anyone for money or anything of value -- including for non-politicalpurposes, andsoliciting or receiving political contributions in the House office buildings, the Capitol, or districtoffices.Both of these matters are discussed in the House Ethics Manual, 102d Cong., 2d Sess. (April 1992):solicitation in general on pp. 50-52 and 64-65, and political fundraising activity in House offices on p.285. Both of these matters are also addressed in an advisory memorandum which the Committee issuedon April 4, 1995, which announced certain new restrictions on solicitation. Copies of both the Manualand the April 1995 advisory memorandum are available from the Committee office.Because of recent items in the news media on the legality and propriety of political fundraising activityin Federal offices, the Committee believes this is an opportune time to set out the standards which applyin the House. The Committee also believes that this is an appropriate time to remind Members and staffof the general law governing solicitation by them, including solicitations made for non-politicalpurposes.Solicitation by Members, Officers and EmployeesGeneral prohibition against solicitation. Under a provision of the Ethics Reform Act of 1989, HouseMembers, officers and employees are generally prohibited from asking for anything of value from abroad range of persons: specifically, anyone who seeks official action from the House, does businesswith the House, or has interests which may be substantially affected by the performance of officialduties. Under the statute, which is codified at 5 U.S.C. 7353, the only solicitations of such personswhich are permissible are those sanctioned by this Committee.The terms of the prohibition are very broad. The provision applies to the solicitation of not only money,but "anything of value" . In addition, the prohibition covers solicitations of things for the personal benefitof the Member, officer or employee, as well as things which involve no personal benefit. Thus, as theHouse Ethics Manual notes (at p. 52), the statute bars, for example, a staffer from asking a lobbyist forfree tickets to a sporting event, or from asking lobbyists to help pay for a party to be given in honor of aMember. While the examples used in the Manual refer to solicitations of lobbyists, it would be equallyimpermissible to make the same requests of non-lobbyist officials of a corporation, association or othersuch entity. A solicitation made by another person in the name of a Member, officer or employee, andwith the knowledge and acquiescence of that official, will likely be deemed a solicitation by that official.

http://www.house.gov/ethics/m_memo_42597.htm 7/1412005
http://www.house.gov/ethics/m_memo_42597.htmhttp://www.house.gov/ethics/m_memo_42597.htm


50/59


51/59

m memo 42597 Page 3 of3

Soliciting Political Contributions. Regarding, first, the matter of soliciting political contributions, thebasic rule is straightforward: Members and staff may not solicit political contributions in their officeor elsewhere in the House buildings, whether in person, over the telephone, or otherwise. This ruleapplies with regard to the Capitol, the House office buildings, and district offices.The rule bars all political solicitations in these House buildings. Thus a telephone solicitation would notbe permissible merely because, for example, the call is billed to the credit card of a political organizationor to an outside telephone number, or it is made using a cellphone in the hallway. Similarly, where aHouse Member or employee makes solicitation calls somewhere else, such as at one of the campaigncommittee offices, and has to leave a message, the individual should not leave his or her House officenumber for the return call.Receiving Political Contributions. The rule on receiving political contributions is equallystraightforward: Members and stat/may not request that a contribution be sent or delivered to theirHouse office, and may not assent to the sending or delivery ~fa contribution to their House office.Thus a Member or employee should never authorize a solicitation for political contributions (or, for thatmatter, any other political communication) which uses a House office address. Furthermore, if aMember or staffer learns that an individual who is going to be visiting the office intends to offer acontribution during his or her visit, the individual must be told that the contribution cannot be acceptedhere, and arrangements for delivery of the contribution elsewhere must be made.However, if someone unexpectedly offers a contribution during a visit to a House office, or if someoneunexpectedly mails or delivers a contribution to the office, the contribution can be accepted, providedthat it is forwarded to the political committee within seven days of receipt. The criminal statute, 18U.S.C. 607, includes a provision which specifically permits acceptance and forwarding of acontribution received in a Congressional office, provided that the contribution was not solicited in anymanner which directs the contributor to mail or deliver a contribution to any Federal office. Please note,however, that an envelope forwarding a contribution may not be sent under the frank, and thus theforwarding must be done using personal or campaign stationery and stamps.Additional Considerations. Two additional points should be made here, and these apply to bothsoliciting and receiving political contributions. First, the rules set forth above to not bar Members fromsoliciting or receiving contributions from other Members in the House buildings. Please note, however,that one of the new House rules approved in January prohibits the knowing distribution of campaigncontributions on the House floor, in the Speaker's Lobby, and in the cloakrooms.Second, these rules are not limited to contributions for Congressional campaigns. They apply to thesolicitation and receipt of all political contributions, including those for campaigns for state or localoffice.Any questions on the above matters, and any requests for copies of the House Ethics Manual or theCommittee's advisory memorandum of April 4, 1995, should be directed to the Committee's Office ofAdvice and Education at 5-3787.

http://www.house.gov/ethics/m_memo_42597.htm 7114/2005
http://www.house.gov/ethics/m_memo_42597.htmhttp://www.house.gov/ethics/m_memo_42597.htm


52/59

EXHIBITQ


53/59

Prohibition Against Linking Official Actions to Partisan or Political Considerations, or Pe.; Page 1 of 3

May 11, 1999

MEMORANDUM FOR ALL MEMBERS, OFFICERS AND EMPLOYEESFROM: Committee on Standards of Official ConductLamar Smith, ChairmanHoward LBerman, Ranking Minority MemberSUBJECT: Prohibition Against Linking Official Actions to Partisan or Political Considerations, orPersonal Gain

By this memorandum, the Committee on Standards of Official Conduct undertakes to remind HouseMembers and staff of one of the fundamental rules of ethics for government service. That rule is thatgovernment officials, including House Members and staff, are prohibited from taking or withholdingany official action on the basis of the partisan affiliation or the campaign contributions or support of theinvolved individuals, or the prospect of personal gain either for oneself or anyone else. House Membersand staff are likewise prohibited from threatening punitive action on the basis of such considerations.As detailed below, questions in this area have arisen most frequently on the matter of casework. TheCommittee has long advised that in responding to constituents' requests for casework assistance, HouseMembers and staff are to disregard such considerations as the individual's partisan affiliation, politicalsupport, or campaign contributions. Under this guidance, House offices are not to give preferentialtreatment to casework requests made by the Member's supporters or contributors, but rather are tohandle all requests for casework assistance according to their merits.With this memorandum, the Committee stresses that -

these rules apply generally to all official actions taken by a Member or his or her congressionaloffice, and not merely to casework matters, and these rules preclude the taking of official actions, either in favor of or against individuals ororganizations, based on such considerations, and also preclude threatening to take punitive actionsbased on such considerations.

http://www.house.gov/ethics/m_Partisan_Activity.htm 7114/2005
http://www.house.gov/ethics/m_Partisan_Activity.htmhttp://www.house.gov/ethics/m_Partisan_Activity.htm


54/59


55/59

Prohibition Against Linking Official Actions

CREW: House Ethics Committee: Regarding Rep. Cunningham Ethics Violations: 7/15/2005 - Cunningham...

Documents

Transcript of CREW: House Ethics Committee: Regarding Rep. Cunningham Ethics Violations: 7/15/2005 - Cunningham...